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According to a Reuters News Release, H&R Block and Jackson Hewitt Tax Service sales dropped this tax season. The largest tax service, H&R Block Inc. (NYSE: HRB) based in Kansas City, MO, US with offices in the US, Canada, Australia, and the United Kingdom, reported a 5% drop in the number of tax returns filed for the 2009 tax year.  The tax service giant and its chief competitor, Jackson Hewitt Tax Service (NYSE: JTX) located in Norfolk, VA, US continue to lose market shares to online software like Turbo Tax.  Jackson Hewitt, with over 5,000 franchises in the US, was founded by John Hewitt, a former Block employee, in 1982.  Turbo Tax is the tax preparation software product of Intuit Inc. (NASDAQ: INTU) headquartered in Mountain View, CA, US.

A recent list of last minute tips from the IRS includes the following -

• The world has changed. Avoid using paper tax forms. File electronically for free on IRS.gov using their Free File Fillable Forms or Traditional Free File.
• Check social security numbers (SSN) CAREFULLY. Make certain ANY documents you include with the official IRS tax forms have a heading that includes the social security number of the primary tax payer AND the tax year.  If you have a balance due and are sending a check to the IRS as payment, include your SSN, the particular tax form you are using (1040, 1040A, 1040EZ, etc.), and the tax year for which you are sending payment on the check. The IRS also recommends putting a day-time phone number somewhere on the check. I am old-fashion; I put the tax information in the upper left corner of the check above my name (and address if appropriate).  I would put a day-time phone number in the lower left memo section!
• Check all your calculations. An old accounting trick is to check totals by adding numbers from the bottom up rather than from the top down. Change the order or sequence in the way you read or add numbers to make certain you eyes aren’t playing tricks on you.
• Reconfirm which line AND column of tax tables or IRS charts you are using when you determine some value from published information.  Read the “At Least” AND the “But Less Than” columns carefully!
• If you mail your return to the government, confirm that the address is correct in the “Where Do You File?” section on IRS.gov or in your tax instruction booklet. The address you use to mail a tax return with a balance due (you owe money to the government) is DIFFERENT from the address you use if you expect or are claiming a tax refund.
• If you are mailing a payment for a tax balance due the government, write the check out to the “United States Treasury”. Send the payment with IRS Form 1040-V, Payment Voucher.
• Consider electronic payments where you authorize electronic funds withdrawals or use a credit card.  Use the search feature on IRS.gov to learn more information about electronic payment options.
• Consider filing IRS Form 4868, Application for Extension of Time to File US Individual Income Tax Return or IRS Form 9465, Installment Agreement Request. Make certain you read the documentation carefully.

Have questions about whether or not you received the $250 Economic Recovery Payment (ERP) in May, 2009?   Three different funding agencies are involved; Social Security Administration, Railroad Retirement Benefits or the Veterans Administration.  You will be required, for security reasons, to authenticate who you are.  Have your social security number, your date of birth and zip code (the one you used on your tax return) available.  You can either call 866-234-2942 and select #1 for the ERP question or use a web-based version of the information provided on the phone is available at:

http://www.irs.gov/individuals/article/0,,id=219514,00.html

Are you unemployed or struggling with personal finances?  There is a new informational section on the government website, IRS.gov, that has information and web links to tax-related resources, tax assistance information, and suggestions that could help you through these difficult financial times. The Tax Center to Assist Unemployed Taxpayers has been created to offer advice, free publications, links to sources for tax planning, tax settlement plans, offers in compromise, etc. as well as other relevant topics for which you need planning information. There are also links to videos, health insurance information, and other IRS publications covering topics like bankruptcy, cancellation of debt income, and bartering income. Get information directly from the “horse’s mouth” rather than your well-intentioned neighbor or friend.

There are several qualifications for claiming an adult as a dependent:
1. You as the taxpayer must provide over 50 percent of your dependent’s living or support costs.
2. Your dependent must either live with you for 12 months or be your parent, grandparent, step-parent, aunt, or uncle.
3. Assuming the person does not have a disability, your dependent cannot have a gross income that exceeds the tax year’s exemption amount. The exemption amount in 2009 is $3,650.
4. Your dependent cannot file a joint return with another person for the year unless that tax filing is only completed in order to claim taxes that had been withheld.
5. Your dependent must be a US citizen, a US national, or a resident of the US, Canada, or Mexico.

A taxpayer may qualify for the Child and Dependent Care Credit if their dependent lives with them for more than 6 months of the year and have physical or mental issues that prevent them from caring for themselves. Visit the IRS website or consult Publication 503, Child and Dependent Care Expenses for further information.